Chevron 2007 Annual Report Supplement

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Upstream Indonesia Other International Geothermal and Power Geothermal/Cogeneration The company operates the Darajat geothermal field located in a contract area in Garut, West Java, Indonesia. The field’s total capacity of 259 megawatts includes the Darajat III 110-megawatt unit that was placed online in July 2007. An additional unit, Darajat IV, remains under evaluation, with an investment decision expected in 2009 after further study of the reservoir. Also in West Java, Chevron operates the Salak geothermal field in the Gunung Salak contract area. The field’s total capacity is 377 megawatts. A drilling program that began in 2006 is scheduled to continue in a phased development through 2010 to optimize operations and meet the steam needs of the power plant and optimize the field. Chevron holds a 96 percent interest in Darajat and 100 percent interest in Salak. Chevron also has 95 percent operated interest in the North Duri Cogeneration Plant in Sumatra, supplying up to 300 megawatts of electrical power to CPI as well as steam in support of CPI’s Duri steamflood project. Chevron Corporation 2007 Supplement to the Annual Report Other International The “Other International” region is composed of Latin America, Canada and Europe. Argentina Chevron holds operated interests in 17 concessions and one exploratory block in the Neuquen and Austral basins. Working interests range from 18.8 percent to 100 percent. In addition, Chevron holds a 14 percent interest in Oleoductos del Valle S.A. pipeline, a major crude-oil pipeline from the Neuquen producing area to the Atlantic coast. �� Production During 2007, total daily production averaged 54,000 barrels of crude oil and 62 million cubic feet of natural gas. The company’s net oil-equivalent production for the year was 47,000 barrels per day. In 2007, the company continued the development of El Trapial Field with sequential projects to reduce base-production declines. The first of these projects, the Porche Development Stage 1, was completed in September 2007.
Exploration During first-half 2007, three exploratory wells were drilled in the Austral Basin, and two were successful. Three exploratory blocks were relinquished in 2007. Brazil Chevron holds working interests in two deepwater blocks in the Campos Basin: BC-4 (51.7 percent, operated), which includes the Frade Field, and BC-20 (30 percent and 37.5 percent, nonoperated working interest in two areas). In the Santos Basin, the company holds a 20 percent nonoperated working interest in Block BS-4. Development The Frade Field lies in approximately 3,700 feet (1,128 m) of water, 230 miles (370 km) northeast of Rio de Janeiro. In 2007, major construction activities included the work to convert a crude-oil tanker to an FPSO vessel and the manufacture of subsea systems and flowlines for the project. Subsea installation activities began in early 2008. Initial proved undeveloped reserves were recorded in 2005. Partial reclassification of proved undeveloped reserves to the proved developed category is anticipated upon production start-up expected in early 2009. Estimated maximum total daily production of 85,000 barrels of crude oil and 30 million cubic feet of natural gas is anticipated in 2011. The concession that involves the Frade project expires in 2025. The total project cost is estimated at $2.8 billion. Exploration Following the end of the exploration phase in Block BC-20, the company retained two fields for development: 37.5 percent-owned Papa-Terra and 30 percent-owned Maromba. Six wells had been drilled in Papa-Terra and approximately 350 million potentially recoverable oil-equivalent barrels were identified in three separate reservoirs. In 2006, the Papa-Terra field development plan was submitted to the government, and as of early 2008, this plan was still under evaluation. Start-up is anticipated in 2011. In Maromba, a pilot production system was under consideration in early 2008, with first oil projected for 2013. FEED for this pilot system was expected to start in mid-2008. Eight wells confirmed approximately 140 million potentially recoverable oilequivalent barrels. As of early 2008, development options for the Atlanta and Oliva fields, both in Block BS-4, were under evaluation, with FEED expected in 2010 and first oil projected for 2014. In the Block BM-C-4, the final required exploration well was drilled and tested on the Guarana prospect, but no commercial resources were found. In June 2007, the company relinquished its 30 percent nonoperated interest in the block. Other International Upstream Colombia Chevron’s activities in Colombia are focused on the production and commercialization of natural gas from properties in the Caribbean Sea and adjacent coastal areas of the Guajira Peninsula. The company operates the offshore Chuchupa and the onshore Ballena and Riohacha natural-gas fields as part of the Guajira Association contract. In exchange, Chevron receives 43 percent of the production for the remaining life of each field and a variable production volume from a fixed-fee Build-Operate- Maintain-Transfer (BOMT) agreement based on prior Chuchupa capital contributions. The BOMT agreement expires in 2016, and the expected life of the fields included in the Guajira Association contract is through 2026. Major activities during 2007 included facility upgrades, installation of an offshore 24-inch (61-cm) natural-gas pipeline and new dehydration facilities. The expansion of export infrastructure in the Guajira gas development is expected to facilitate increased export volumes of natural gas to Venezuela through a gas pipeline commissioned at the end of 2007 that connects Colombia and Venezuela. Production Total daily production in 2007 averaged 469 million cubic feet of natural gas (178 million net). Trinidad and Tobago The company has a 50 percent nonoperated working interest in four blocks in the offshore East Coast Marine Area of Trinidad, which includes the Dolphin and Dolphin Deep producing naturalgas fields and the Starfish discovery. Chevron also holds a 50 percent operated interest in the Manatee area of Block 6d. Production During 2007, total daily production from the Dolphin and Dolphin Deep fields averaged 456 million cubic feet of natural gas (174 million net). These volumes were sold under three gas sales contracts. Development In May 2007, a domestic gas sales agreement was signed for the Trinidad Incremental Gas Project. The agreement provides for the daily delivery of 220 million cubic feet of natural gas for 11 years. Associated with this contract, drilling operations started in late 2007 at the Dolphin platform. The project scope includes five wells and a facility upgrade. First gas from the project is expected in 2009, ramping up to maximum total production of 220 million cubic feet per day in early 2010. Reserves were initially booked in 2006. In 2007, additional proved undeveloped reserves were recorded and a portion of proved undeveloped reserves were reclassified to the proved developed category. Further reclassifications were expected in 2008 following the drilling of additional development wells. Chevron Corporation 2007 Supplement to the Annual Report
Page 1 and 2: Energy Performance 2007 Supplement
Page 3 and 4: 2007 at a Glance Accomplishments Co
Page 5 and 6: Consolidated Statement of Income Ye
Page 7 and 8: Consolidated Balance Sheet At Decem
Page 9 and 10: Capital and Exploratory Expenditure
Page 11 and 12: Miscellaneous Data 007 2006 2005 20
Page 13 and 14: Highlights Worldwide net oil-equiva
Page 15 and 16: • Kazakhstan - Ramp-up of expande
Page 17 and 18: Kettleman Hills Chevron increased i
Page 19 and 20: • Jack, a 2004 discovery at Walke
Page 21 and 22: Development Drilling activity withi
Page 23 and 24: Development South Offshore Water In
Page 25 and 26: Asia-Pacific Major producing countr
Page 27 and 28: Kazakhstan Chevron is the largest p
Page 29 and 30: Thailand In the Gulf of Thailand, C
Page 31 and 32: Exploration The Ordos Basin blocks
Page 33: Remaining production from the Rokan
Page 37 and 38: Athabasca Oil Sands Project The com
Page 39 and 40: Production Total daily production i
Page 41 and 42: Major Development Projects 1 Maximu
Page 43 and 44: Net Oil-Equivalent Production 1 Yea
Page 45 and 46: Net Natural Gas Production 1 Year e
Page 47 and 48: Natural Gas Realizations 1 Year end
Page 49 and 50: Net Wells Completed * Year ended De
Page 51 and 52: Highlights Downstream is a key elem
Page 53 and 54: Marketing The Marketing organizatio
Page 55 and 56: Transportation The company’s tran
Page 57 and 58: Refining Capacity at Year-End 2007
Page 59 and 60: Refined-Product Sales Year ended De
Page 61 and 62: Chemicals ChEvRON CORPORATION Photo
Page 63 and 64: Manufacturing and Research and Deve
Page 65 and 66: Technology Chevron has three techno
Page 67 and 68: Mining Chevron’s U.S.-based minin
Page 69 and 70: Synthetic Crude Oil A marketable an
Page 71 and 72: Chevron History 1879 Incorporated i

Chevron 2007 Annual Report Supplement

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